A serious lack of investment in gas storage means the current crisis in Ukraine could threaten EU energy security in the near future, according to oil and gas consultant Daniel Prinsloo.
Mr Prinsloo, the Director of Energy and Natural Resources with financial modellling firm F1F9, believes that if the crisis in Ukraine continues and Russia decides to restrict the gas to the west, there is potentially inadequate storage to meet the shortfall.
“The current market demand for gas is low so there is less urgency to put plans in place to reduce our exposure to gas supply issues from Russia and Ukraine,” explained Mr Prinsloo.
“Just last week the former Soviet leader Mikhail Gorbachev said the world is on the brink of a new Cold War and that makes the west vulnerable to gas shortages in the future.
“If the commercial drivers for investment are not there at the moment, then EU leaders need to come together and find another way to foot the bill.
“Long-term there will always be demand for gas so who should pay for these LNG infrastructures in the short to medium term?”Mr Prinsloo will host a webinar on the topic with Dr Yvonne Barton, an advisor on the regulation of gas markets.
Daniel added: “We want to use this webinar to offer organisations the opportunity to obtain a greater understanding of the very real threats that the current crisis between Ukraine and Russia poses to gas supply in the EU, and how investment could be sought to reduce future volatility in gas supply.
“There is a real danger here that we are sleep walking into a gas-related energy crisis in the not too distant future and we must act now to avoid this, even if the market can’t appreciate this right now.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/regasification/17112014/ukraine-crisis-an-ongoing-threat-1804/